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Barclays announces fixed rate cuts of up to 0.2%, while HSBC also join the rate-cutting train

ended 02. September 2024

It never rains but it pours. Hot on the heels of NatWest this AM, Barclays has just announced it is making selected rates cuts of up to 0.2% from tomorrow. For example, a 4.95% 2 Year Fixed £0 product fee, 85% LTV, Min loan £5k, Max loan £2m, will decrease to 4.75% (screengrab below). HSBC has also announced it is reducing across the board, although the rates won't be published until tomorrow. Newspage asked brokers for their views, bottom.

9 responses from the Newspage community

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Stephen PerkinsVerified
Managing Director at Yellow Brick Mortgages
It's back to school and this is the rate equivalent of a pile-on. First we had NatWest, then Barclays and now HSBC all cutting rates as the rate-war marches on. This is the real deal.
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Rohit KohliVerified
Director at The Mortgage Stop
The good news continues as Barclays make further reductions to their rates, especially in the 85% loan-to-value bracket. The mood among lenders is clearly that these levels of rates are here to stay for a while longer and, as long as there are no shocks with inflation next week, then borrowers should act quickly. These ongoing cuts are quickly turning things into a sellers' market and prices could start to edge up quickly.
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Craig FishVerified
Director at Lodestone Mortgages
It's only the first working day of the month but lenders are firing on all cylinders. They've come out of the blocks quicker than Usain Bolt. There are good reductions from several lenders already this morning, and more lenders are likely to follow. As the nights grow darker, this is a bright sign that the UK property market is about to make a resurgence in time for the Autumn.
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Iain SwattonVerified
Director at Exemplar Financial Services
Today’s flurry of rate reductions is a very positive sign, with lenders actively pricing to encourage buyers to take the plunge. This is great news for remortgage clients coming off low rates, as it helps soften the blow. It seems the winds of optimism are starting to blow through the market. All in all, this is a great start to September for borrowers.
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Gabriel McKeownVerified
Head of Macroeconomics at Sad Rabbit - Substack Newsletter
This latest round of mortgage rate cuts has emerged as a much-needed ray of sunshine piercing through the economic clouds of the UK housing market. There is growing optimism among homeowners and prospective buyers, with the reintroduction of sub-4% rates offering a confidence boost to many struggling to transition from historically low rates. However, further mortgage rate cuts hinge on continued economic stability and the Bank of England's future monetary policy. So, although borrowers should remain cautious, with lenders slashing rates, the winds of change are finally ushering in a new era of affordability for homeowners.
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Ranald MitchellVerified
Director at bad credit mortgage specialists Charwin Mortgages
With Barclays continuing the rate-cut race with a 0.2% reduction, the chase for the top spot in the mortgage market is becoming relentless. Lenders are clearly vying to outdo each other, and in this race, there are no prizes for second place. These cuts are all about reigniting consumer confidence and getting the housing market back in full swing. As competition intensifies, we're edging closer to that crucial tipping point where buyers feel confident to take the plunge. The fight is intensifying.
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Justin MoyVerified
Managing Director at EHF Mortgages
It's as if lenders are celebrating the kids going back to school, with three High Street lenders announcing rate cuts this morning, coupled with Halifax at the end of last week. There is definitely an air of optimism among borrowers. Transaction numbers are steadily increasing and much of that pent-up demand is starting to make its move, with more property available to buy.
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Riz MalikVerified
Independent Financial Adviser at R3 Wealth
What a great start to the week! Not only are the little angels going back to school but we have seen some big hitters in the mortgage market announcing that they are cutting rates. Unlike the price of Oasis tickets, mortgage pricing seems to be falling.
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Elliott CulleyVerified
Director at Switch Mortgage Finance
Barclays have readjusted their rates on a range products but concentrating mainly on higher deposit products. Barclays aren't attempting the set the world alight with these changes and it's more an attempt to try and stay competitive. It's not a sweeping change to the whole product range and first time buyers with low deposits will feel left out.